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Kapital Boost Loans Review
Find out how SMEs can raise much-needed funds to pay for key assets.
Kapital Boost is a crowdfunding platform aimed at SMEs who want to raise funds to pay for business assets. The organisation uses an innovative and ethical funding model, and is Sharia compliant. Read on to find out what you need to know about Kapital Boost.
Compare Kapital Boost Business Loans
How does a Kapital Boost funding campaign work?
If you’re an SME who needs to purchase assets, you can submit a funding campaign for the costs via Kapital Boost’s website. Once your campaign is approved, you could then be matched with Kapital Boost members who commit to part-funding the cost of your new assets. Your business will need to agree to purchase the contracted assets for the original cost – plus a certain amount of future profit.
From the lender’s point of view, the profit margin from this transaction is the funding return. As the matchmaker, Kapital Boost will set the agreed funding amount, the funding return and the funding period.
Features of a funding campaign with Kapital Boost
- No hidden fees. The platform operates a model which is interest free, Sharia-compliant and uses a cost-plus-profit structure. Also, there’s no investor fee to pay. Asset purchase agreements are capped at S$150,000.
- Fast approvals process. Members who agree to invest in an SME will sign a funding agreement electronically, which helps to ensure a speedy service. According to Kapital Boost’s website, the platform will respond to your application within five days and funding could be raised between a further one and 30 days.
- Short-term funding plans. The maximum term you can borrow for is 12 months.
- Invoice financing. In addition to asset purchase financing, Kapital Boost also offers invoice financing to companies based in Indonesia. This lets a business seek a cash advance to meet its working capital needs.
How much will the funding campaign cost?
The following fees and charges to be aware of for a funding campaign with Kapital Boost include:
- An administration fee of 5% is charged on the total funding amount
- You’ll be charged penalties for late payments, or the early cancellation of your live campaign
Make sure you read the terms and conditions with care, so you are fully aware of all the fees and charges before applying for a funding campaign.
Is my business eligible?
To be eligible for funding, an SME has to meet the following requirements as a minimum:
- Be an operating business for one year or longer
- Have annual sales of at least S$100,000
- Have a positive free cash flow over the past 12 months
- Also, SMEs with existing invoices for purchase orders are preferred
Kapital Boost also has a credit risk scoring system based on a company’s business profile, financial position, and corporate governance. According to this platform’s website, funding campaigns are only accepted for “productive” campaigns and activities linked to “gambling, weapons or those causing environmental harm” won’t be eligible.
How to apply with Kapital Boost
If you’re ready to apply a funding campaign with Kapital Boost, you’ll need to complete and submit a form via the platform’s website. A Kapital Boost representative will then follow-up with you for further information. Or, you can email the platform or speak to them directly at +65 6342 5473 (in Singapore). Before applying, make sure that you meet the eligibility criteria and have any required documents ready.
Your SME will need at least one from the following:
- Personal guarantee by one or more of your company directors
- A joint bank account between your company and Kapital Boost to manage funds
- A post-dated giro payment by your company to Kapital Boost
- A security/collateral with an estimated value at least 150% of the requested funding amount
- The direct transfer of funds from investors to asset suppliers (for Asset Purchase financing)
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